GOVERNMENT URGED TO LOWER BEEF PRICE

 by Andi Abdussalam

Jakarta, June 9 (Antara) - The prices of food commodities, particularly beef, in the market this week have been increasing as Muslims across the country began observing the fasting month of Ramadan.          President Joko Widodo had earlier given directives that commodity prices during the fasting month and its subsequent Eid al-Fitr, or Lebaran festivities, should not increase.          The president had made it clear that the price of beef should be maintained at Rp80 thousand per kilogram (kg).          However, the prices of food commodities, such as shallots and beef, remain high, while that of rice was successfully stabilized. Consumers believe that the price of beef has been rising steeply.          "The government has the responsibility to protect consumers from the skyrocketing prices of food commodities, particularly that of beef, which has now reached between Rp125 thousand and Rp130 thousand per kg. It has to stabilize the prices at a fair level and make it affordable to the consumers," Chairman of the Indonesian Consumers Institute Tulus Abadi noted in a press statement on Saturday (June 4).         The price of beef until this week still remained high in the market despite the government's plan to keep it under check. It seems that the plan has not been implemented optimally.        "The president has given us directives since long. He has noticed that the price of beef is too high. I have to confess that the implementation of the plan is not maximal. Of course, we should take its positive aspect, so it would not recur," Trade Minister Thomas Lembong stated at the Presidential Palace complex on Wednesday.         Unlike beef, the implementation of the plan on rice has been successful.         "The stock is adequate, and the price is under control," the minister said, adding that the plan made by the government's economic team will be one of the things to be prioritized.         "The president has called on us to abide by the decisions. Such decisions should not be made hastily and in a reactive manner but instead should be planned in advance," he emphasized.         Inter-institutional coordination to control beef prices is not yet optimal. There is low adherence to the already taken decisions, and it was still being done with a business mind-set.         The efforts to reduce the price of beef can be started at the level of cattle farmers and traders.     "They complained of the high cattle feed prices and transportation cost. Actually, they should not merely complain but should be creative and innovative," he remarked.         If the price is steep due to the high transportation cost as result of traffic jams, then efforts should be made to solve such problems.     "Probably, transportation activities can be conducted at night when there are no traffic jams," the minister suggested.     The Indonesian government is planning to step up beef supplies in the market to lower the price of the commodity, which fetched Rp120 thousand-Rp160 thousand per kilogram on Monday (June 7).          "Of course, we must augment our supplies. This is related to supply and demand. If the demand increases, while the supply does not increase, then the price will go up," President Joko Widodo stated on Tuesday ( June 8).          In order to increase beef stock at home, the government will import the commodity. It has  has appointed Perum Bulog (state logiscs board) and PT Berdikari to import beef and shallots to control any hike in the prices of the two commodities.          "I have appointed the two state-owned companies to control the hike in prices of various staples, especially shallots and beef, following the President's instruction to these companies to reduce the prices during the Ramahan fasting month and the post-fasting festivities of Iedl Fitr," Minister of State Enterprises, Rini Soemarno, has said.          The president believes if the government imports beef to meet the demand in the near future, its price will decline. "Let us see. We have started (importing beef). It is unlikely (the beef price) will decline in one to two days," he stated.           If the government's target to keep the price of beef stable at Rp80 thousand per kilogram is reached, it will then verify it by conducting checks with the community, he remarked.           Due to high demand ahead of the fasting month, beef prices soared to Rp170 thousand per kilogram in Aceh, Rp160 thousand per kilogram in West Kalimantan, and Rp120 thousand per kilogram in Jakarta.          Meanwhile, the price of beef in the country's cattle-rearing regions, including East Java, stood at Rp90 thousand per kilogram.      The finance director of Perum Bulog chapter of North Sumatra, Irianto Hutagaol, informed that permits have been issued to import 10,000 tons of beef.  "We (Bulog and Berdikari) are each given a permit to import 5,000 tons and the beef will later be sold at a price of Rp80,000 per kilogram," she disclosed.          They will import the commodity from Australia, according to plans. They have not yet been realized but the permits have been issued and if imports must be made, that will be done.          YLKI hopes that the government should also supervise the quality of beef to ensure that there would be no adulterated meat circulating in the market.          The government should also put in order the food trade aimed at stabilizing supplies and prices.  "Stabilizing food prices is one of the public services. So, if the prices of food items are not stable it constitutes a violation by the government and state," YLKI chairman Tulus Abadi said.**3***(a014/INE/o001)DITED BY INET.A014/A/BESSR/O. Tamindael) 09-06-2016 13:51: